Crypto Gang in China Sentenced for 32% Illegal Deposits

A criminal gang in Danzhou, Hainan Province, China, was recently sentenced for illegally soliciting over tens of millions in public deposits by using the lure of profits from trading virtual currencies. The Danzhou City Procuratorate announced that the gang was prosecuted for this crime, which involved promising high returns from cryptocurrency investments. The group was charged with the crime of illegally absorbing public deposits.

The court found the group guilty of joint crimes involving the illegal absorption of public funds. They were sentenced to fixed-term imprisonment and fined. The gang conspired to illegally solicit public deposits through a method dubbed "contract-based crypto trading" for the purpose of profiting from cryptocurrency speculation. To attract more "clients" and disguise their activities, the group created online communities and registered a company offline to market their "contract-based crypto trading" services. They promised "clients" that by investing funds with the group for cryptocurrency trading, they would receive daily rebates equivalent to 3% of their investment amount.

Within just a few months, the group illegally absorbed over 10 million yuan from 32 "clients" for cryptocurrency speculation on trading platforms. However, as the purchased cryptocurrencies continued to depreciate, the group became unable to sustain the promised rebates, leading to a complete "collapse." This case highlights the risks associated with unregulated cryptocurrency investments and the importance of regulatory oversight in protecting public funds.